Sensex ends shade firmer at 40,802, telecom shares shine

Closing bell

Equity benchmarks Sensex and Nifty on Monday closed on a mixed note after a volatile day of trading as losses in auto and private bank stocks offset a rally in the telecom counters.

The 30-share BSE Sensex closed marginally higher by 8.36 points or 0.02 per cent at 40,802.17. The index swung between a high of 41,093.99 and a low of 40,707.63 during the day.

On the other hand, the broader NSE Nifty settled 7.85 points or 0.07 per cent down at 12,048.20.

On the Sensex, Bharti Airtel emerged as the biggest gainer, followed by Reliance, Asian Paints, Kotak Bank and IndusInd Bank, rising up to 4.17 per cent.

On the other hand, YES Bank was the biggest loser in the pack, followed by Bajaj Finance, ONGC, Sun Pharma, Tata Steel and Maruti - falling up to 6.22 per cent. - PTI

European shares near recent highs on upbeat data from China, Eurozone  

The pan-European STOXX 600 index was flat at 0803 GMT. File Photo

European shares climbed back to recent highs on Monday, as upbeat factory activity data from China and major eurozone economies boosted trade-sensitive sectors, including miners and oil and gas.

The pan-European STOXX 600 index rose 0.6 per cent, closing in on a fresh four-year peak hit last week, led by a 1.5 per cent gain for China-exposed miners, while rising oil prices helped the energy sector up 1.2 per cent. Click here to read in full the European markets report .

Karvy suspension: what investors need to know

The worst is not yet over for clients of one of the largest brokerage firms in the country, Karvy Stock Broking Ltd (KSBL).

While clients have been facing hardship for the last one week, with SEBI issuing an ex-parte-ad-interim order, the exchanges now seem to have simply ended the game by suspending KSBL’s membership licence. Click here to read in full the report on what investors should know about the Karvy suspension .

Oil jumps amid hopes for further OPEC cuts, China factory growth

Brace for further correction in crude oil prices next week

Oil prices rose more than 1 per cent on Monday as signs of rising manufacturing activity in China pointed to increasing fuel demand, and hints that OPEC may deepen output cuts at its meeting this week indicated supply may tighten next year. Click here to read in full the oil markets report .

Sensex, Nifty trade flat

The Sensex and the Nifty traded flat, off their early highs, in the afternoon session on Tuesday.

The 30-share index was at 40,798, up 5 points, while the Nifty was at 12,049, down 6 points.

The top gainers on the Sensex were Bharti Airtel, Reliance, Asian Paints, M&M and Kotak Bank. The laggards were YES Bank, ONGC, Bajaj Finance, Sun Pharma and Tech Mahindra.

The Bharti Airtel and Reliance Industries stocks gained 4.68 per cent and 2.26 per cent each, rallying on the tariff hike announced by the telecom service providers.

On the other hand, YES Bank, ONGC, Bajaj Finance, Sun Pharma and Tech Mahindra dropped between 2-5 per cent during the session.

The telecom sector shares ruled firm on the back of the tariff hikes announced yesterday. the BSE telecom index was up 4.69 per cent. Energy shares gained 1.21 per cent during the session.

The majority of indices however, were in the red,

with the auto index down 0.77 per cent and consumer durables down 0.62 per cent.

Stocks tick up on upbeat China factory reports, trade talk hopes

Global shares shuffled marginally higher on Monday to stand just short of the record peak struck in January 2018, with buyers encouraged by upbeat China manufacturing surveys and hopes that China and the US will agree to a preliminary trade deal.

As of 0550 GMT, MSCI's broadest gauge of world shares ticked up 0.1 per cent. US stock futures gained 0.31 per cent to near record highs after a dip in a truncated US session on Friday due to a Thanksgiving holiday. Click here to read in full the Asian markets report .

Nifty Call: Go short on a strong fall below 12,050 levels

28/05/2019 MUMBAI: The new breand identity for Nifty Indices launch at the National Stock Exchange in Mumbai on May 28, 2019. Photo By. Paul Noronha

The Sensex and the Nifty commenced the session on a positive note taking bullish cues from the Asian markets. The Nikkei 225 has jumped 1 per cent to 23,529 and the Hang Seng index has rallied 0.4 per cent to 26,443 levels in today's session. Following a positive start, the domestic equity indices, the Sensex and the Nifty began to decline due to selling pressure and profit taking at higher levels and are hovering slightly in the negative territory. The market breadth of the Nifty is biased towards declines.

The India VIX, the fear index, has jumped 4 per cent to 14.48 levels, indicating higher volatility is on the cards. The Nifty mid and small-cap indices have slumped 0.8 per cent each. Barring the Nifty metal index which has rallied 0.2 per cent, all the other sectoral indices are hovering in the negative territory. The Nifty IT index has slumped 1.1 per cent. Click here to read in full the Nifty call report .

Gold prices open weak as CME gold shows signs of weakness

Gold prices moved negative on futures, hinting at a continued weakness in the spot markets at the opening of the week on the first trading day of December. Click here to read in full the gold markets report .

Sensex, Nifty halt decline

The benchmark indices, which fell sharply in the morning session, have reversed their losses to stand firmer at mid-session .

The Sensex was at 40,821, up 27 points, while the Nifty was flat at 12,055.

The top gainers in the Sensex pack were Bharti Airtel, Reliance, Asian Paints, M&M and Vedanta. The laggards were Tech Mahindra, ONGC, Bajaj Finance, YES Bank and Sun Pharma.

The telecom sector shares were the top gainers in the session. The telecom sectoral index on the BSE rose 4.87 per cent, followed by energy, which gained 1.10 per cent. The notable losers were the IT and healthcare indices.

Telecom stocks surge after tariff hike announcements

Shares of telecom companies on Monday surged on the back of new tariff plans announced by the operators to be effective from December 3 onwards.

Shares of Vodafone Idea were trading at Rs 8.38, up 22.69 per cent, on the BSE. The stock rose 22.63 per cent to Rs 8.40 on the NSE.

Bharti Airtel appreciated 7.35 per cent to trade at Rs 474.80 on the BSE. The stock gained as much as 9.82 per cent to Rs 485.75 in early trade. On the NSE, the stock jumped 7.36 per cent to Rs 475.

Mobile calls and internet charges will go up by up to 50 per cent in the country, as private sector players - Bharti Airtel, Vodafone Idea and Reliance Jio - on Sunday announced plans to raise tariffs from December 3.

Reliance Jio on Sunday said it will launch new unlimited plans from December 6, which will raise its voice and data tariff by up to 40 per cent.

Unlisted Reliance Jio Infocomm is part of Reliance Industries, whose shares gained 2.63 per cent on the BSE. On the NSE, the scrip went up 2.61 per cent to Rs 1,591.65. - PTI

DHFL shares fall as RBI starts resolution process

Shares of Dewan Housing Finance Corporation on Monday fell nearly 5 per cent to hit their lower price band after the RBI filed an application to initiate an insolvency resolution process against the company.

Shares of the troubled firm fell 4.83 per cent to trade at Rs 19.70 on the BSE. On the NSE, the stock fell 4.83 per cent to Rs 19.75.

The Reserve Bank on Friday sent the troubled mortgage lender Dewan Housing Finance (DHFL) for bankruptcy proceedings, making it the first financial services player to go to the NCLT for a possible debt resolution.

“The Reserve Bank today (Friday) filed an application for initiation of a corporate insolvency resolution process (with the NCLT Mumbai) against DHFL under Section 227 of the Insolvency and Bankruptcy Code,” the RBI had said in a statement. - PTI

NSE suspends Karvy's licence

The National Stock Exchange (NSE) has finally moved to cancel the licence of Karvy Stock Broking (KSBL). The brokerage house was restricted by SEBI from doing client business as cases of client default have come to light. Click here to read more on suspension of Karvy's licence

Rupee slips 4 paise to 71.78 against US dollar in early trade

The Indian rupee opened on a cautious note and fell 4 paise to 71.78 against the United States (US) dollar in early trade on Monday as economic growth concerns and rising crude oil prices kept investors edgy.

Forex traders said investors traded cautiously after India’s Q2 GDP growth dipped to over 6-yr low of 4.5 per cent.

India’s GDP growth hit an over six-year low of 4.5 per cent in July-September 2019, dragged mainly by deceleration in manufacturing output and subdued farm sector activity, according to official data released on Friday. Click here to read more on rupee/dollar trade .

Sensex, Nifty fall into the red

The benchmark indices, the Sensex and Nifty, which opened the session in the green, fell into the red in the morning session.

The Sensex dropped to 40,781, down 12 points, while the Nifty was at 12,046, down 9 points.

Oil jumps on Chinese factory growth, hopes for deeper OPEC cuts

Brace for further correction in crude oil prices next week

Oil prices rose more than 1 per cent on Monday as signs of rising manufacturing activity in China pointed to increasing fuel demand and hints that OPEC may deepen output cuts at its meeting this week indicated supply may tighten next year. Click here to read in full the oil markets report .

A bull call spread on Glenmark Pharma may pay

The long-term outlook for the Glenmark Pharmaceuticals (Rs 337.30) stock will remain negative as long as it trades below ₹681. In the short-term, the stock may try to bounce back. It finds immediate support at ₹317 and a crucial one at ₹280. A close below the latter could trigger another bout of selling that could drag Glenmark Pharma below the ₹250 level.

On the other hand, Glenmark finds an immediate resistance at ₹361 and a close above this level has the potential to lift the stock to ₹426. Click here to read in full the report on Glenmark Pharmaceuticals .

Pound slips as polls tighten, optimism holds on trade front

The British pound began the week on the back foot as polls showed a tightening UK election race, while an unexpected rebound in Chinese manufacturing supported risk appetite. Click here to read in full the global forex markets report.

Asian stocks tick up on upbeat China factory reports, trade talk hopes

Global shares rose on Monday and oil rebounded after upbeat China manufacturing surveys and as investors clung to hopes Beijing and Washington could reach a compromise in trade talks. Click here to read the Asian markets report in full.

Daily Rupee Call: Re between two key levels; wait for entry

At the interbank foreign exchange, the rupee opened at 71.63.

The rupee (INR) closed at 71.73 on Friday, after testing support at 71.88. It had closed Thursday’s session at 71.6 against the dollar (USD). The Indian currency has slipped below the key level of 71.6. But it has a support band between 71.88 and 72, which could arrest further deprecation. Click here to read in full the Daily Rupee Call.

Big Story: The A to Z of home insurance

A house is among the most valuable and expensive assets an individual possesses. But like any other investment, property, too, comes with its own risks. Take, for instance, the hundreds of people who lost their houses in the frequent floods the country has been witnessing.

Home insurance, in situations akin to the one mentioned above, protects you — whether you are the home owner or a tenant — from the financial burden of re-building a house or re-purchasing the contents of your home. You can get coverage for your belongings, including domestic appliances, jewellery and furniture. Click here to read in full the Big Story on home insurance .

Opening bell

The benchmark indices, the BSE Sensex and the NSE Nifty, opened the week in the green.

The Sensex was at 40,914, up 120 points or 0.30 per cent, while the Nifty was at 12,137, a gain of 81 points or 0.67 per cent.

Index Outlook: Nifty tests a crucial barrier

Following a strong start, the benchmark indices — the Sensex and the Nifty — extended their rally to register new highs. However, profit-booking at higher levels capped the gains in the latter part of the week.

With the real GDP growth for the July-September quarter slumping to a 26-quarter low of 4.5 per cent, markets could remain jittery, and further erosion of last week’s gains is possible. Click here to read in full the Index Outlook on the Nifty .

Weekly trading guide: RIL might witness minor correction

SBI (₹341.8)

The stock of SBI advanced in past week and broke beyond a couple of resistances at ₹335 and ₹347, and registered an intra-week high of ₹351. But on Friday, the stock softened, and closed at ₹341.8. We can observe in the weekly chart that the price range between ₹347 and ₹351 has acted as a resistance in the past, arresting the uptrend. So, even though the outlook for the stock remains positive and it has a strong base at ₹335, it will be a considerable challenge for it to pass through those levels on the upside. The bullishness in the stock is corroborated by the daily relative index as it shows good strength in the prevailing upswing. However, though the moving average convergence divergence indicator looks positive, it exhibits some weakness. Thus, there are factors that work for and against the stock. So, from a trading perspective, you have to apply appropriate risk-management steps. If the stock manages to rally beyond ₹351, it may rise to ₹364, but if it witnesses a correction, it can come down to ₹335. The support below that level is at ₹322.

ITC (₹246.4)

Over the last week, the stock of ITC was held between two key levels — ₹245 and ₹250. However, the price movement suggests a bearish bias; but for a further decline, the price should decisively break below ₹245 . The bearish bias is further validated by the moving averages as the price continues totrade below both 21- and 50-DMAs. The daily relative strength index remains below the midpoint level of 50, another condition that goes against the stock. But there was no noticeable downtick last week. The moving average convergence divergence indicator also points downwards and remains in the negative territory. Considering these factors, the probability of the stock weakening further is high. However, fresh short positions should be initiated only if the price breaches the support at ₹245. Below that level, the support comes in at ₹242 and ₹234.05 — its 52-week low. On the other hand, a prolonged sideways movement will result in bears losing steam and could result in short covering. On the upside, the stock will face resistance at ₹250 and ₹258.

Infosys (₹696.3)

The recovery in the stock of Infosys looks to have stalled as its price continues to consolidate between ₹690 and ₹725. Though ₹690 is acting as a good base, the prolonged consolidation might not favour the stock. The price is traversing across the 21-day moving average, unable to establish a trend on either side; but the stock remains below the 50-day moving average. The daily relative strength index and the moving average convergence divergence indicator are flat following the price action of the stock, unable to hint any direction. So, the next leg of the trend can be confirmed only if the stock breaks either of the limits of the range. If the stock breaks out of ₹725, the recovery will lift the price to ₹760. This is a critical level as the 61.8 per cent Fibonacci retracement of the previous bear trend coincides with the 50-day moving average. A further appreciation will take the stock price to ₹800. Alternatively, if the stock breaks down from the range, it could slump to ₹665, below which the support is at ₹620.

RIL (₹1,551.1)

The stock of Reliance Industries gained in the first half of the past week when it registered a fresh lifetime high of ₹1,584.15. However, on Friday, the stock declined, giving up the entire week’s gain. This could be because of profit-booking, and there are chances for it to get extended. This is indicated by the daily relative strength index, which, unlike the price, has failed to form a higher peak. The weakness in the index could develop into a bearish divergence, an indication of a trend-reversal. The moving average convergence divergence indicator, too, exhibit weakness. However, the overall trend remains bullish and unless the stock breaks below ₹1,500, it can be approached with a bullish bias from a medium- term perspective. The support at ₹1,500 is also coincided by the 21-day moving average, making it more significant. If the stock gains bullish momentum and appreciates, it will most likely retest the lifetime high at ₹1,584.15, above which the resistance is at ₹1,617. If the stock falls from the current level, it has a support at ₹1,530. Below that level lies the strong support at ₹1,500.

Tata Steel (₹427.5)

The stock of Tata Steel managed to breakout of the key resistance at ₹415 last week, opening the door for further strengthening. The breakout, following a strong bounce from the 21-day moving average, has also resulted in a higher peak in the daily chart, a bullish indication. The intra-week high registered last week at ₹434.3 is also the stock’s four-month high. Though the momentum seems to be favourable for the stock, you need to be wary of certain indications. Unlike the price, the daily relative strength index has failed to form a higher high, hinting that the bulls may be losing steam. The moving average convergence divergence indicator is unable to back the bullish price action. If the stock, on the back of a breakout, continues to advance from the current level, it will most probably test the resistance at ₹440. This level is coincided by the 61.8 per cent Fibonacci retracement level. Above that, the resistance is at ₹462. On the other hand, if the stock falls back below ₹415, the support is at ₹400.

COMMENT NOW